Citigroup to Cut 11,000 Jobs, Take $1 Bln in Charges

Citigroup Inc will eliminate 11,000
jobs worldwide, about 4 percent of its total staff, in a move to
save as much as $1.1 billion a year in expenses, the company
said on Wednesday.

Dec 5 Citigroup Inc will eliminate 11,000
jobs worldwide, about 4 percent of its total staff, in a move to
save as much as $1.1 billion a year in expenses, the company
said on Wednesday.

The move will initially result in pre-tax charges of $1
billion to fourth-quarter earnings, the company said in a
statement.

The move is the first major action to restructure the
company since directors named Michael Corbat chief executive
officer in October after becoming impatient with former CEO
Vikram Pandit.

"We have identified areas and products where our scale does
not provide for meaningful returns," Corbat said in a statement
from the company. "We will further increase our operating
efficiency by reducing excess capacity and expenses," he added.

Besides the job cuts, the reorganization will reduce annual
revenues by "less than $300 million," the statement said.

Analysts have expected an action of this sort since Corbat
was introduced as CEO by Chairman Michael O'Neill. O'Neill is
known in the banking industry for shrinking companies to
eliminate businesses that are not earning satisfactory returns.